Retirees across the nation know that every penny counts when you are living on a fixed income, and in Minnesota, retirees are learning fast that making their dollars stretch farther is getting harder to do these days. According to Kiplinger.com, “the North Star State offers cold comfort on the tax front to retirees,” and military retirees are no exception.
The unfortunate fact is Minnesota has consistently ranked in the bottom half of states to retire as a veteran. There are two million retired military members in America today, and Minnesota is home to less than 1% of them because we offer no retirement incentives to vets. Every day there is a service member retiring from the military, and every day a military retiree is given a list of tax-friendly states in which to retire, and every day Minnesota is not on that list.
I’m proud to have proposed legislation to exempt military retirees’ pension income from the Minnesota state income tax. Unfortunately, I have to make this proposal on a yearly basis, because year after year the Democrat-controlled legislature has refused to make veterans a priority. This past session, they voted to spend $90 million for a new legislative office building that will have no return on investment for Minnesotans, but they weren’t willing to invest $25 million in wooing military retirees to make their homes here.
Veterans groups have contacted our office exasperated that Democrats seem to have money for everything under the sun, but when it comes to Veterans they are consistently told there isn’t anything left for them.
Exempting military pensions isn’t only the right thing to do, it’s also a financially sound investment. Minnesota would invest approximately $25 million in FY 2015 to provide this incentive to vets, but if more military retirees decided to live in Minnesota as a result, the return on investment could be several times that. Just look to our neighboring states: veterans relocating to Wisconsin pulled an additional $340 million into the state since their income tax exemption was enacted, and that money is now circulating in the economy, creating jobs and revenue. Iowa saw the value and followed suit with an exemption of their own this January. Investing wisely to improve the quality of life for military retirees, their spouses and their children will produce a positive domino effect across our entire tax structure.
Not only that, military retirees make good neighbors. They are well educated, with many having taken advantage of educational opportunities provided by the military. As a result of their service, many have acquired advanced technical and leadership skills. Virtually none have criminal records or are habitual drug users. Vets have proven themselves to be highly productive citizens and make many contributions to the communities in which they choose to retire.
The North Star State, home to the Hockey Hall of Fame and where whitetail deer are plentiful, gives military retirees a very typical Minnesota wintry reception. Next year, let’s send a new message to our military community: “You’ve served our country, now let us serve you.”
I’m proud to have proposed legislation to exempt military retirees’ pension income from the Minnesota state income tax. Unfortunately, I have to make this proposal on a yearly basis, because year after year the Democrat-controlled legislature has refused to make veterans a priority. This past session, they voted to spend $90 million for a new legislative office building that will have no return on investment for Minnesotans, but they weren’t willing to invest $25 million in wooing military retirees to make their homes here.